Foreign currency reserves increase by EUR 300mn

Foreign currency reserves increase by EUR 300mn

BELGRADE -- The foreign currency reserves of the National Bank of Serbia (NBS) totalled around EUR 10.3 billion at the end of February.

This is some EUR 300 million more than in late January, and ensures M1 coverage of 311 percent and around seven months' worth of import of goods and services, the NBS said on Wednesday.

The greatest foreign currency inflow in February came from NBS interventions on the inter-bank foreign exchange market when the central bank purchased EUR 140 million so as to alleviate excessive daily volatility of the exchange rate.

In addition to this, a higher inflow was realised on grounds of sale of euro-denominated securities issued by the government of the Republic of Serbia on the local financial market to the total value of EUR 92.8 million, while the net inflow on grounds of foreign currency mandatory reserves added up to EUR 79.1 million.

A higher outflow from foreign currency reserves was realized on grounds of the payment of pending dues toward foreign creditors to the total value of EUR 84.2 million.

Net foreign currency reserves totaled around EUR 8.09 billion at the end of February.